Technology
Price
$242.41
-1.58%Market Cap
$86.09B
Day High
$248.04
Day Low
$238.90
Cloudflare (NET) delivered strong Q1 2026 revenue growth of 33.5% YoY to $639.8M, while narrowing its net loss to $22.9M and maintaining positive operating cash flow of $158.3M, though gross margin compressed 4.7 percentage points to 71.2%.
Key risk: Gross Margin Deterioration
Cost of revenue grew 59.3% YoY — nearly double the revenue growth rate of 33.5% — compressing gross margin by 4.7 percentage points to 71.2%. If infrastructure and bandwidth costs continue to outpace revenue growth, profitability timelines could be pushed out significantly.